On December 18, 2001, the date of demutualization, The Prudential Insurance Company of America (“PICA”) established a closed block for certain in-force participating insurance policies and annuity products, along with corresponding assets used for the payment of benefits and policyholders’ dividends on these products, (collectively the “Closed Block”), and ceased offering these participating products. The recorded assets and liabilities were allocated to the Closed Block at their historical carrying amounts. The Closed Block forms the principal component of the Closed Block division. For additional information regarding the Closed Block, see Note 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

As of June 30, 2025 and December 31, 2024, the Company recognized a policyholder dividend obligation of $1,729 million and $2,096 million, respectively, to Closed Block policyholders for the excess of actual cumulative earnings over expected cumulative earnings. Additionally, accumulated net unrealized investment gains (losses) were reflected as a policyholder dividend obligation of $(1,514) million and $(2,096) million at June 30, 2025 and December 31, 2024, respectively, with a corresponding amount reported in AOCI.

As of June 30, 2025, the Closed Block has sufficient funds to make guaranteed policy benefit payments and there is no expectation that assets outside of the Closed Block will be needed to fund future payments. The excess of Closed Block liabilities over Closed Block assets as of the end of the reporting period shown in the table below is a reasonable measure of the margin in the reported liabilities compared to best estimate liabilities assuming the current dividend scale. Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows:


	June 30, 2025		December 31, 2024
	(in millions)
Closed Block liabilities
Future policy benefits	$	41,927	$	42,464
Policyholders’ dividends payable	695		688
Policyholders’ dividend obligation	215		0
Policyholders’ account balances	4,293		4,359
Other Closed Block liabilities	3,292		3,346
Total Closed Block liabilities	50,422		50,857
Closed Block assets
Fixed maturities, available-for-sale, at fair value	29,154		28,570
Fixed maturities, trading, at fair value	647		647
Equity securities, at fair value	1,475		1,642
Commercial mortgage and other loans	7,628		7,652
Policy loans	3,280		3,348
Other invested assets	4,521		4,929
Short-term investments	346		520
Total investments	47,051		47,308
Cash and cash equivalents	368		400
Accrued investment income	402		403
Other Closed Block assets	299		367
Total Closed Block assets	48,120		48,478
Excess of reported Closed Block liabilities over Closed Block assets	2,302		2,379
Portion of above representing accumulated other comprehensive income (loss):
Net unrealized investment gains (losses)	(1,666)		(2,299)
Allocated to policyholder dividend obligation	1,514		2,096
Future earnings to be recognized from Closed Block assets and Closed Block liabilities	$	2,150	$	2,176


	Six Months Ended June 30, 2025
	(in millions)
Balance, December 31, 2024	$	0

Impact from earnings allocable to policyholder dividend obligation	(367)
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation	582
Balance, June 30, 2025	$	215


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(in millions)
Revenues
Premiums	$	444	$	433	$	862	$	842
Net investment income	511		506		1,003		1,019
Realized investment gains (losses), net	(199)		(174)		(255)		(299)
Other income (loss)	190		43		156		207
Total Closed Block revenues	946		808		1,766		1,769
Benefits and Expenses
Policyholders’ benefits	616		604		1,217		1,188
Interest credited to policyholders’ account balances	28		29		56		59
Dividends to policyholders	249		162		377		437
General and administrative expenses	64		67		142		134
Total Closed Block benefits and expenses	957		862		1,792		1,818
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes	(11)		(54)		(26)		(49)
Income tax expense (benefit)	(31)		(73)		(66)		(88)
Closed Block revenues, net of Closed Block benefits and expenses and income taxes	$	20	$	19	$	40	$	39